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An investigation of the asymmetric link between credit re-ratings and corporate financial decisions: “Flicking the switch” with financial flexibility
16 references·6 citing·35 second hopsampled
An investigation of the asymmetric link between credit re-ratings and corporate financial decisions: “Flicking the switch” with financial flexibility (2014)An investigation of the asymmetric link b…Capital Structure Decisions: Which Factors Are Reliably Important? (2007)Capital Structure Decisions: …Credit Ratings and Capital Structure (2006)Credit Ratings and Capital St…Do Firms Rebalance Their Capital Structures? (2005)Do Firms Rebalance Their Capi…PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital (2004)PE Ratios, PEG Ratios, and Es…Investment–Cash Flow Sensitivities: Constrained versus Unconstrained Firms (2004)Investment–Cash Flow Sensitiv…Testing Trade-Off and Pecking Order Predictions About Dividends and Debt (2002)Testing Trade-Off and Pecking…The theory and practice of corporate finance: evidence from the field (2001)The theory and practice of co…How Big Are the Tax Benefits of Debt? (2000)How Big Are the Tax Benefits …The Relationship between Firm Investment and Financial Status (1999)The Relationship between Firm…How Big are the Tax Benefits of Debt? (1998)How Big are the Tax Benefits …Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)Do Investment-Cash Flow Sensi…What Do We Know about Capital Structure? Some Evidence from International Data (1995)What Do We Know about Capital…Do Taxes Affect Corporate Financing Decisions? (1990)Do Taxes Affect Corporate Fin…Statistical Models of Bond Ratings: A Methodological Inquiry (1979)Statistical Models of Bond Ra…Determinants of corporate borrowing (1977)Determinants of corporate bor…Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…COVID-19 Shock, Financial Flexibility, and Hotels' Performance Nexus (2022)COVID-19 Shock, Financial Fle…The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry (2021)The nonlinear relationship be…Financial flexibility, dynamic capabilities, and the performance of manufacturing enterprises (2020)Financial flexibility, dynami…Do Companies Need Financial Flexibility for Sustainable Development? (2020)Do Companies Need Financial F…Credit ratings and corporate cash holdings: Evidence from Korea’s corporate reform after the 1997 Asian financial crisis (2017)Credit ratings and corporate …Returns to acquirers of public and subsidiary targets (2015)Returns to acquirers of publi…The Cost of Capital, Corporation Finance and the Theory of Investment (1958)Dividend Policy, Growth, and the Valuation of Shares (1961)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)The Capital Structure Puzzle (1984)A Survey of Corporate Governance (1997)Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Back to the Beginning: Persistence and the Cross‐Section of Corporate Capital Structure (2008)Do Peer Firms Affect Corporate Financial Policy? (2013)… and the Cross-Section of Expected Returns (2015)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)On Persistence in Mutual Fund Performance (1997)Corporate financing and investment decisions when firms have information that investors do not have (1984)The Financial Accelerator in a Quantitative Business Cycle Framework (1998)Managing with Style: The Effect of Managers on Firm Policies (2003)New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index (2010)FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968)Does the Source of Capital Affect Capital Structure? (2005)Financing patterns around the world: Are small firms different?☆ (2008)Macroeconomic Effects of Financial Shocks (2012)The Cross-Section of Expected Stock Returns (1992)Political connections and the cost of equity capital (2012)The relevance of environmental disclosures: Are such disclosures incrementally informative? (2013)Corporate social responsibility disclosure and the cost of equity capital: The roles of stakeholder orientation and financial transparency (2014)Common risk factors in the returns on stocks and bonds (1993)Market Timing and Capital Structure (2002)CEO Overconfidence and Corporate Investment (2005)Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)Law, finance, and economic growth in China (2005)The economic implications of corporate financial reporting (2005)Law and Finance (1998)Corporate Ownership Around the World (1999)Capital Structure (2001)Capital Structure and Stock Returns (2004)
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References

  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1977Determinants of corporate borrowing13,160 cited
  • 1997Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?6,790 cited
  • 1995What Do We Know about Capital Structure? Some Evidence from International Data6,527 cited
  • 2001The theory and practice of corporate finance: evidence from the field5,947 cited
  • 2002Testing Trade-Off and Pecking Order Predictions About Dividends and Debt3,396 cited
  • 2007Capital Structure Decisions: Which Factors Are Reliably Important?2,853 cited
  • 2004PE Ratios, PEG Ratios, and Estimating the Implied Expected Rate of Return on Equity Capital1,749 cited
  • 2005Do Firms Rebalance Their Capital Structures?1,495 cited
  • 2000How Big Are the Tax Benefits of Debt?1,483 cited
  • 1999The Relationship between Firm Investment and Financial Status1,433 cited
  • 1990Do Taxes Affect Corporate Financing Decisions?1,156 cited
  • 2004Investment–Cash Flow Sensitivities: Constrained versus Unconstrained Firms1,042 cited
  • 2006Credit Ratings and Capital Structure847 cited
  • 1998How Big are the Tax Benefits of Debt?805 cited

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  • 1979Statistical Models of Bond Ratings: A Methodological Inquiry651 cited
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    • 2015Returns to acquirers of public and subsidiary targets38 cited
    • 2021The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry32 cited
    • 2020Financial flexibility, dynamic capabilities, and the performance of manufacturing enterprises30 cited
    • 2020Do Companies Need Financial Flexibility for Sustainable Development?21 cited
    • 2017Credit ratings and corporate cash holdings: Evidence from Korea’s corporate reform after the 1997 Asian financial crisis19 cited
    • 2022COVID-19 Shock, Financial Flexibility, and Hotels' Performance Nexus17 cited